Ecommerce is growing at a rapid clip in Singapore and set to expand by 48% by 2022. Despite these positive tailwinds, running a successful ecommerce business continues to be a massive challenge, with new entrants and competition heating up in every category. Fortunately, there are ways to get ahead of the competition and stand out from the crowd. Here are some steps to building a successful ecommerce store.
Niche is everything
The age old property market mantra of “Location, location, location” also applies online. Unless you have the resources to build substantial marketplace businesses like Lazada and Qoo10, selling anything and everything is a surefire way to lose. Instead, focus on “Niche, niche, niche” when starting your ecommerce store. You need to find a category that carries high profit margins, is easy to ship, and does not have too much competition.
Know your persona
The “personality” of your store needs to match the type of customers you are planning on selling to. If you’re selling to expats, using local language idioms may not resonate well. Use personalised messaging and communicate to your visitors and customers in the same style as if you were having a direct conversation with them. It helps if you picked a niche where you genuinely have passion in as that positive persona will carry throughout your customer’s experience. Here are some pointers if you still need to figure out what customers really want.
Remarketing is more important
Most retailers are obsessed with generating leads for their business at the top of their customer acquisition funnel. They believe that marketing is about spending as much as possible at all channels in order to find a never ending stream of potential customers. However, customer acquisition cost becomes very expensive with this method as most purchases do not happen on the first encounter with your brand. (if you need more visitors, here’s some strategies to generate free advertising).
A better strategy is to focus on strategies to remarket to your customers so that you can continue the conversation with your potential customers, aid them in their discovery, and help resolve any concerns they may have. The key mechanism is developing a robust email list and infrastructure so that you can engage your audience at the right time and place.
Running a successful ecommerce store requires more effort and attention in today’s competitive environment. However, it is achievable and focusing on the right strategies can allow you to enjoy the fruits of your labour. Consider these tips whether you are looking for ways to enhance your existing ecommerce store or for ways to take your offline store into the online realm.